Why EACs are essential tools for an effective Net Zero strategy?

In our previous article, Net Zero: How to Communicate Sustainability Without Greenwashing?, we explored how companies can build credibility through transparent communication around their Net Zero commitments. Clarity, verifiability, and transparency are key pillars of trust, but they are not enough. These principles must be backed by concrete and measurable climate actions. 

This is where Energy Attribute Certificates (EACs) come into play. While often misunderstood as simple reporting tools or mistaken for offsets, EACs are in fact recognised instruments for enabling credible renewable energy procurement. When applied thoughtfully, such as within a broader, science-aligned Net Zero strategy, they support measurable progress by addressing Scope 2 emissions and strengthening climate accountability across operations and value chains. 

Setting the scene

As national and international climate deadlines draw closer, companies must do more than set intentions, they must demonstrate measurable progress, aligned with global climate goals. In the European Union, for example, climate neutrality is targeted by 2050, with a binding interim goal of cutting greenhouse gas emissions by 55% by 2030. Achieving this requires substantial transformation in how we consume and produce energy. 

One critical area is electricity consumption, which currently accounts for nearly 30% of all GHG emissions in Europe. These emissions stem from how electricity is generated, often still through carbon-intensive sources such as fossil fuels.. 

EACs offer a market-based mechanism to address this. They allow organisations to claim renewable electricity use by matching their consumption with certified renewable generation. Far beyond a communication asset, EACs are transparent, traceable, and legally recognised under international frameworks such as the GHG Protocol, CDP, and RE100. When properly used, they serve as concrete instruments for long-term carbon reduction. 

What is an EAC?

Electricity is fungible, meaning once it enters the grid, it becomes indistinguishable from electricity produced by any other source. This means you can’t trace which specific electrons come from wind, solar, gas, or coal. The grid is a shared system that blends power from all generation types, including fossil fuels, nuclear, and renewables. 

To address this challenge, EACs provide a contractual mechanism for claiming renewable electricity use. Each EAC is a digital certificate that verifies one megawatt-hour (1 MWh) of electricity was generated from a renewable source, such as wind, solar, hydro, biomass, or geothermal, and fed into the grid. By purchasing EACs, companies can credibly match their electricity consumption with renewable generation, in line with internationally recognised accounting frameworks like the GHG Protocol, CDP, and RE100. 

When reporting Scope 2 emissions, companies are typically required to disclose them using two methods: 

• Location-based, which reflects the average emissions intensity of the local grid; and 
• Market-based, which reflects emissions from electricity that companies have purposefully procured, such as through EACs. 

For electricity consumption not covered by EACs, companies must use the residual mix, a national or regional emissions factor that excludes all renewable electricity already claimed by others. As a result, the residual mix is often significantly higher in carbon intensity, reinforcing the value of EACs for credible climate reporting. 

Each EAC is: 

• Traceable: with a unique identification number and standardised metadata; 
• Quantifiable: as it corresponds to a fixed unit of renewable electricity (1 MWh); and 
• Verifiable: issued through certified registries that ensure transparency and integrity. 

Because each certificate can be clearly linked to a specific origin and generation method, EACs offer companies a credible way to claim renewable electricity use, in line with international standards like the GHG Protocol and CDP. 

Each certificate includes verifiable data such as: 

• The energy source used to produce the electricity; 
• The location and type of the generating facility; 
• The technology employed; and 
• A unique identification number 

This traceability strengthens the credibility of climate commitments not only in the eyes of regulators, but also among stakeholders such as investors, customers, rating agencies, and civil society. Using EACs signals that an organisation is taking measurable and transparent steps toward its Net Zero goals, backed by verifiable evidence rather than vague declarations. 

There are several types of EACs used worldwide: 

• RECs (Renewable Energy Certificates) in the US and Canada 
• I-RECs, managed by the International REC Standard Foundation, available across Asia, Africa, Latin America, and the Middle East 
• GOs (Guarantees of Origin) in Europe, implemented under the EU Renewable Energy Directive 
• REGOs in the UK

What are the benefits for companies?

By purchasing EACs equivalent to their electricity consumption, businesses can: 

• Reduce their market-based Scope 2 emissions by certifying that the electricity they use is backed by renewable generation 
• Report green electricity usage without needing to physically change suppliers or infrastructure 
• Support the renewable energy market by creating a positive pricing signal and financing new capacity 
• Gain strategic flexibility as EACs can be tailored to align with your sustainability goals, geographical presence, budget, and sourcing preferences. 

In addition, companies can curate a portfolio of EACs that reflects their values and brand positioning. This includes choosing attributes such as: 

• Energy source (e.g. wind, solar, hydro) 
• Project location (e.g. in countries where operations are based or where impact is most needed) 
• Technology type 
• Renewable project age 
• EAC vintage 
• Optional ecolabel certifications ¹

A strategic asset in your Net Zero action plan

EACs are a key mechanism for supporting measurable emission reductions. They are not a substitute for operational improvements but a complementary tool within a broader Net Zero roadmap that includes energy efficiency, process optimisation, and electrification. EACs offer an immediate and credible solution in both the short-term and the long-term. Integrated into a coherent strategy, they help companies: 

• Accelerate their climate impact 
• Actively support the global energy transition 
• Strengthen ESG reporting with verifiable actions.

Nvalue: your partner for tailored EAC strategies

At Nvalue, we support businesses on their journey to Net Zero by helping them design, source, and manage a custom EAC portfolio aligned with their sustainability goals. 

Our expertise enables you to build a climate strategy that is credible, transparent, and fully aligned with international standards. 

Get in touch with us today to make EACs a central, measurable pillar of your energy transition.